If you live in England or Northern Ireland and your personal assets are more than £23,250 you now have to pay the cost of the long term care you will receive. For Scotland, the upper capital limit is £28,750, and for Wales is £50,000.
Apart from the emotional cost, arranging care for yourself or a loved one is also extremely complicated. Dealing with issues like mental capacity, eligibility for state benefits, Lasting or Enduring Powers of Attorney*, the type and location of the care home and funding the care itself causes stress and worry. And yet less than 15% of people who do not qualify for financial support will have sought appropriate, and regulated, financial advice before entering care.**
The number of people living in the UK over 85 is set to double to 3.2 million by mid-2041, and treble to 5.1 million by 2066 (7% of the UK population).**
The 'single' average cost in a residential care home in the UK is around £34,000 a year, increasing to over £48,000 for those receiving nursing care, and with the average stay at about three years, the costs are substantial.†
If you need care, and have to fund the fees yourself, there are many things that you will need to consider. Not only will it be important that you receive care in a home you have chosen, you will also need to consider whether you can afford to pay the fees for as long as is needed. You may also wish to protect your wealth so that some inheritance may be passed on to the next generation.
Paying for care can be an expensive and long term commitment. There are pros and cons to the funding solutions available, so it is essential to seek financial advice from a specialist adviser as early as possible to find the right solution to suit your individual needs.
Whether you are concerned about saving for care home fees in the future, or facing the possibility of needing to pay these fees now, St. James's Place Wealth Management can help you and your family with the options available.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
* Powers of Attorney involve the referral to a service which is separate and distinct to those offered by St. James's Place and are not regulated by the Financial Conduct Authority.
Sources: **Age UK, Later Life in the United Kingdom 2019, †Payingforcare.org, 2020 (Based on Laing & Buisson report 2020)
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